Credit card spends touch record high at Rs 1.44 lakh crore in July: RBI data
RBI data reveals that most credit card issuers saw an increase in spends during July.
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Credit card spends in July this year hit a new high of Rs 1.44 lakh crore, registering a 5.5 per cent increase compared to June. This is far ahead of the previous benchmark of Rs 1.41 lakh crore recorded in May. The data compiled by Reserve Bank of India showed that the banking sector added almost 11.9 lakh credit cards in July. This has expanded the outstanding credit card base to 8.99 crore as compared to 8.86 cror the previous month.
In June, the credit card spends had fallen to Rs 1.37 lakh crore, marking a decline of 2.91 per cent in spends compared to May. RBI data showed that most major credit card issuers saw an increase in spends during July, leading to credit card usage breaching a new high.
What does the RBI credit card usage data reveal?
The data stated that the share of PoS (point-of-sale) transactions fell from 36 per cent in June to 34.3 per cent in July. On the other hand, the share of e-commerce payments using credit cards rose to 65.7 per cent from 64 per cent.
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HDFC Bank saw the largest volume in terms of credit card spends at total transaction amounting to Rs 39,403 crore. The State Bank of India maintained the second spot in July in terms of total spending. On the other hand, ICICI Bank topped among lenders, in terms of percentage-wise growth, with a 12.2 per cent surge. Kotak Mahindra Bank witnessed an increase in credit card usage by 10.5 per cent. HDFC Bank, SBI and Axis Bank saw their credit card spends rising between 2 and 5 per cent.
Credit card additions in July 2023
Card additions increased 1.3 per cent in July. The net addition of 11.9 lakh cards was higher than the 9.4 lakh cards added in June, but lower than the figures of over 12 lakh credit cards in April and May. HDFC Bank maintained its position as the largest card issuer with the addition of 1.91 lakh cards. The lender has 1.85 crore cards-in-force.
Axis Bank saw an increase with 2.30 lakh cards. This was a surge from last month when the lender could add only 41,019 cards.
The total credit cards of ICICI Bank went up to 1.5 crore with the addition of 1.86 lakh cards in July. The State Bank of India managed to net 2.07 lakh cards, taking its total cards-in-force to 1.76 crore.
What could this indicate?
The increase in credit card usage could be an indication of more spending during the festive season. The increase could also mean that more companies will offer deals on credit cards as festivals approach.
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